How does family control reduce principal-agent conflict?
Akash ChopdaPro
Principal-agent conflict
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
In case of principal-agent problem, there is a conflict of interest between management and shareholders. In case of family control of a corporation, management and shareholders (i.e. owners of the company) are same, so it would reduce conflict of interest.